Ford Anticipates $7 Billion EV-Related Charges In Two Years - Predicts Model E Division Would Break Even In 2029

Ford Motor Co. (NYSE:F) shared that it anticipates over $7 billion in EV-related charges in 2026 and 2027 amid a strategy pivot at the company's fourth-quarter earnings call.

EV-Related Charges Continue To Hurt Ford

Speaking to investors on Tuesday, Ford Chief Financial Officer Sherry House shared that the automaker will be rejigging its "EV portfolio and assets," as well as launching newer multi-energy platforms. "In 2026 and 2027, we expect to record about $7 billion in charges related to our updated EV strategy," House shared with investors.

House also said that the company's Model E, which is Ford's dedicated EV division, expects to record "losses of $4 billion to $4.5 billion" this year. "We continue to target Model E reaching breakeven in 2029," House said.

Ford CEO Jim Farley also reiterated affordable EV plans, saying that the company's Universal EV Platform would help drive "profitable growth in the lower price segments," as well as form the basis of Ford's upcoming midsize pickup truck, Farley said.

Ford's Q4 Earnings

The automaker reported mixed-bag Q4 earnings, with the reported revenue of $42.45 billion beating market expectations of $41.53 billion. However, the Q4 adjusted earnings of 13 cents per share missed analyst estimates of 18 cents per share.

The earnings call also showcased that Ford's total revenue was down 5% YoY. By the end of the quarter, the Detroit-based automaker had over $23.36 billion in cash and cash equivalents.

Ford's Partnerships With Chinese Brands?

Meanwhile, reports emerged of Ford reportedly being in talks with Xiaomi Corp (OTC:XIACF) (OTC:XIACY) to explore partnership opportunities between the two manufacturers, but the Farley-led automaker has denied any such collaborations.

Ford was also exploring battery partnerships with Chinese EV giant BYD Co. Ltd. (OTC:BYDDY) (OTC:BYDDF) to source lithium-ion batteries for the company's Hybrid vehicles in the U.S.

According to Benzinga Edge Rankings, Ford scores well on the Momentum, Quality and Value metrics. It also has a favorable price trend in the Short, Medium, and Long term.

Price Action: Ford shares gained 0.81% to $13.68 during pre-market trading on Wednesday.

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